SlideShare une entreprise Scribd logo
1  sur  28
Revenue Models
Shaer Hassan
CEO, Nascenia
What?
• How a business generates revenue streams
from its products and services
Why
• To sustain the business
Revenue Models: Commerce & Retail
• Selling physical goods: Clothing
• Selling digital products: Cell phone
Ideal Customers Advantage Problems Ideal Products
• A service sold per unit (hour, distance, weight,
bandwidth): ISP, Telecom, Theater, Bus
• A service with fixed price: ISP, Telecom
• Daily deals / flash sales: ajkerdeal, akhoni
(previously)
Ideal Customers Advantage Problems Ideal Products
Revenue Models: Commerce & Retail
Revenue Models: Subscription &
Usage Fees
• Subscription: Newspaper
• Usage fees: Electricity
• Rental: House, Car
Ideal Customers Advantage Problems Ideal Products
Revenue Models: Licensing
• License of usage: Software
Ideal Customers Advantage Problems Ideal Products
Revenue Models: Auctions & Bids
• Auctions: ebay
Ideal Customers Advantage Problems Ideal Products
Revenue Models: Advertising
• Advertisements: TV, Newspaper, Priyo.com
• Promoted content: Bikroy.com
• Sponsorships: Maya.com.bd
Ideal Customers Advantage Problems Ideal Products
Revenue Models: Data
• Databases: SMS gateways
Ideal Customers Advantage Problems Ideal Products
Revenue Models: Transaction /
Intermediation
• Brokerage
• Transaction enablers: epayment gateway – SSL
Commerze
• Affiliate programs: Amazon
• Creating a platform / marketplace: Odesk, Oployee,
kaymu.com.bd, carmudi.com.bd
Ideal Customers Advantage Problems Ideal Products
Revenue Models: Freemium
• Paid version without advertisements
• Paid version without restrictions
• Paid version with additional features
Ideal Customers Advantage Problems Ideal Products
Revenue Models: Negative Operating
Cycle
• Lower price by receiving payment before
delivering the offering
– Amazon, Airbnb, courier service for c-commerce
in Bangladesh
Ideal Customers Advantage Problems Ideal Products
Revenue Models: Razor/Blades
• Offer the high-margin below cost to increase
volume sales of the low-margin razor blades.
– Printers and ink
– Glucometer
– Free connection with router by ISPs
– Free SIM by Telcos
Ideal Customers Advantage Problems Ideal Products
Revenue Models: Reverse
Razor/Blades
• Offer the low-margin item below cost to
encourage sales of the high-margin
companion product
– Kindle, iPod/iTunes
Ideal Customers Advantage Problems Ideal Products
Pricing Strategy
Selecting Pricing
Objective
Determining
Demand
Estimating Costs
Analyzing
Competitor’s
Costs, Prices
and Offers
Selecting a
Pricing Method
Selecting Final
Price
Pricing Objective
• Survival
• Maximum Current Profit
• Maximum Market Share
• Maximum Market Skimming
• Product-Quality Leadership
• Other Objectives
Selecting Pricing
Objective
Determining
Demand
Estimating Costs
Analyzing
Competitor’s
Costs, Prices
and Offers
Selecting a
Pricing Method
Selecting Final
Price
Determining Demand
• Price Sensitivity
– Less price sensitive when
• Product more distinctive
• Buyers are less aware of substitute
• Expenditure is smaller part of buyer’s income
• Expenditure is small compared to the total cost of the
product
• Product is assumed to have more quality, prestige or
exclusiveness
• Estimating Demand Curves
• Price Elasticity of Demand
Selecting Pricing
Objective
Determining
Demand
Estimating Costs
Analyzing
Competitor’s
Costs, Prices
and Offers
Selecting a
Pricing Method
Selecting Final
Price
Estimating Costs
• Types of costs and level of productions
- Variable cost
- Total cost
- Average cost
• Accumulated production
• Target costing
Selecting Pricing
Objective
Determining
Demand
Estimating Costs
Analyzing
Competitor’s
Costs, Prices
and Offers
Selecting a
Pricing Method
Selecting Final
Price
Estimating Costs
• Accumulated production
• Target costing
Selecting Pricing
Objective
Determining
Demand
Estimating Costs
Analyzing
Competitor’s
Costs, Prices
and Offers
Selecting a
Pricing Method
Selecting Final
Price
Analyzing Competitors’ Costs, Prices
and Offers
Selecting Pricing
Objective
Determining
Demand
Estimating Costs
Analyzing
Competitor’s
Costs, Prices
and Offers
Selecting a
Pricing Method
Selecting Final
Price
Selecting a Pricing Method
• Markup Pricing
– Unit cost = variable cost + fixed cost / unit sales
– Markup price= unit cost / (1 - desired return on
sales) = 16/(1-0.2) = 20
Selecting Pricing
Objective
Determining
Demand
Estimating Costs
Analyzing
Competitor’s
Costs, Prices
and Offers
Selecting a
Pricing Method
Selecting Final
Price
Selecting a Pricing Method
• Target-return Pricing = unit cost + (desired
return*invested capital) / unit sales
• Break-even Volume = fixed cost / (price-
variable cost)
Selecting Pricing
Objective
Determining
Demand
Estimating Costs
Analyzing
Competitor’s
Costs, Prices
and Offers
Selecting a
Pricing Method
Selecting Final
Price
Selecting a Pricing Method
• Perceived Value Pricing
• Value Pricing
• Going Rate Pricing
• Auction-Type Pricing
Selecting Pricing
Objective
Determining
Demand
Estimating Costs
Analyzing
Competitor’s
Costs, Prices
and Offers
Selecting a
Pricing Method
Selecting Final
Price
Selecting Final Price
• Impact of other marketing activities
• Company pricing policies
• Gain-and-risk-sharing Pricing
• Impact of Price on other parties
Selecting Pricing
Objective
Determining
Demand
Estimating Costs
Analyzing
Competitor’s
Costs, Prices
and Offers
Selecting a
Pricing Method
Selecting Final
Price
Need to Know before Revenue Model
• Your strength
– Operation
– Selling skills
– Existing networks
– Market / customer readiness
– Potential market
Thank you
shaer@nascenia.com
linkedin.com/in/shaerhassan
www.nascenia.com

Contenu connexe

Tendances

WTF is programmatic advertising?
WTF is programmatic advertising?WTF is programmatic advertising?
WTF is programmatic advertising?
Filipp Paster
 
Digital Marketing Course | Digital Marketing Tutorial For Beginners | Digital...
Digital Marketing Course | Digital Marketing Tutorial For Beginners | Digital...Digital Marketing Course | Digital Marketing Tutorial For Beginners | Digital...
Digital Marketing Course | Digital Marketing Tutorial For Beginners | Digital...
Simplilearn
 
Creating customer value and customer relationship s1
Creating customer value and customer relationship s1Creating customer value and customer relationship s1
Creating customer value and customer relationship s1
Sameer Mathur
 

Tendances (20)

12 Key Levers of SaaS Success
12 Key Levers of SaaS Success12 Key Levers of SaaS Success
12 Key Levers of SaaS Success
 
WTF is programmatic advertising?
WTF is programmatic advertising?WTF is programmatic advertising?
WTF is programmatic advertising?
 
Digital marketing overview, digital marketing ,DIGITAL MARKETING, Digital Mar...
Digital marketing overview, digital marketing ,DIGITAL MARKETING, Digital Mar...Digital marketing overview, digital marketing ,DIGITAL MARKETING, Digital Mar...
Digital marketing overview, digital marketing ,DIGITAL MARKETING, Digital Mar...
 
Lead Qualification Process and Workflow
Lead Qualification Process and WorkflowLead Qualification Process and Workflow
Lead Qualification Process and Workflow
 
Digital Marketing Course | Digital Marketing Tutorial For Beginners | Digital...
Digital Marketing Course | Digital Marketing Tutorial For Beginners | Digital...Digital Marketing Course | Digital Marketing Tutorial For Beginners | Digital...
Digital Marketing Course | Digital Marketing Tutorial For Beginners | Digital...
 
Creating customer value and customer relationship s1
Creating customer value and customer relationship s1Creating customer value and customer relationship s1
Creating customer value and customer relationship s1
 
Go to-market strategy for B2B SaaS companies
Go to-market strategy for B2B SaaS companiesGo to-market strategy for B2B SaaS companies
Go to-market strategy for B2B SaaS companies
 
Go-to-Market Strategy
Go-to-Market StrategyGo-to-Market Strategy
Go-to-Market Strategy
 
Go-to-market strategy for tech startups
Go-to-market strategy for tech startupsGo-to-market strategy for tech startups
Go-to-market strategy for tech startups
 
New Product Marketing PowerPoint Presentation Slides
New Product Marketing PowerPoint Presentation SlidesNew Product Marketing PowerPoint Presentation Slides
New Product Marketing PowerPoint Presentation Slides
 
Digital Marketing Trends for 2024
Digital Marketing Trends for 2024Digital Marketing Trends for 2024
Digital Marketing Trends for 2024
 
digital marketing course
digital marketing coursedigital marketing course
digital marketing course
 
Outbound prospecting for highly targeted lead flow
Outbound prospecting for highly targeted lead flowOutbound prospecting for highly targeted lead flow
Outbound prospecting for highly targeted lead flow
 
Traditional Marketing vs Digital Marketing
Traditional Marketing vs Digital MarketingTraditional Marketing vs Digital Marketing
Traditional Marketing vs Digital Marketing
 
Go to-market Templates
Go to-market TemplatesGo to-market Templates
Go to-market Templates
 
Digital marketing-plan-template
Digital marketing-plan-templateDigital marketing-plan-template
Digital marketing-plan-template
 
Go to market planning
Go to market planningGo to market planning
Go to market planning
 
Customer segmentation approach
Customer segmentation approachCustomer segmentation approach
Customer segmentation approach
 
Go to-market strategy (gtm)
Go to-market strategy (gtm)Go to-market strategy (gtm)
Go to-market strategy (gtm)
 
Successful sales strategy
Successful sales strategy Successful sales strategy
Successful sales strategy
 

En vedette

En vedette (11)

Mkt mini project
Mkt  mini projectMkt  mini project
Mkt mini project
 
Pricing, Business Models, and What Things are Worth
Pricing, Business Models, and What Things are WorthPricing, Business Models, and What Things are Worth
Pricing, Business Models, and What Things are Worth
 
1109 price proposal-ru-compressed
1109 price proposal-ru-compressed1109 price proposal-ru-compressed
1109 price proposal-ru-compressed
 
Pricing models for bpo organizations
Pricing models for bpo organizationsPricing models for bpo organizations
Pricing models for bpo organizations
 
Marketing presentation
Marketing presentationMarketing presentation
Marketing presentation
 
Cloud Computing by AGDMOUN Khalid
Cloud Computing by AGDMOUN KhalidCloud Computing by AGDMOUN Khalid
Cloud Computing by AGDMOUN Khalid
 
Value Proposition Design (v. 2017-2018 eng)
Value Proposition Design (v. 2017-2018 eng)Value Proposition Design (v. 2017-2018 eng)
Value Proposition Design (v. 2017-2018 eng)
 
Sydney Subscribed 2016: Pricing Strategies for Tomorrow
Sydney Subscribed 2016: Pricing Strategies for TomorrowSydney Subscribed 2016: Pricing Strategies for Tomorrow
Sydney Subscribed 2016: Pricing Strategies for Tomorrow
 
Pricing strategies - Marketing
Pricing strategies - MarketingPricing strategies - Marketing
Pricing strategies - Marketing
 
Product & Pricing Strategies
Product & Pricing StrategiesProduct & Pricing Strategies
Product & Pricing Strategies
 
Segmentation, Value proposition & Go-to-market approach
Segmentation, Value proposition & Go-to-market approachSegmentation, Value proposition & Go-to-market approach
Segmentation, Value proposition & Go-to-market approach
 

Similaire à Revenue Models and Pricing

Principles of marketing topic 6 price 2021
Principles of marketing topic 6 price 2021Principles of marketing topic 6 price 2021
Principles of marketing topic 6 price 2021
znurul anis
 
M5 Pricing and Channels.pptx
M5 Pricing and Channels.pptxM5 Pricing and Channels.pptx
M5 Pricing and Channels.pptx
gururaj101143
 
Business Model Canvas
Business Model CanvasBusiness Model Canvas
Business Model Canvas
Quang Ngoc
 

Similaire à Revenue Models and Pricing (20)

Founder mentor presentation waleed e - revenue
Founder mentor presentation   waleed e - revenueFounder mentor presentation   waleed e - revenue
Founder mentor presentation waleed e - revenue
 
Pricing
PricingPricing
Pricing
 
Class 5
Class 5Class 5
Class 5
 
Costing & Pricing strategies
Costing & Pricing strategiesCosting & Pricing strategies
Costing & Pricing strategies
 
Principles of marketing topic 6 price 2021
Principles of marketing topic 6 price 2021Principles of marketing topic 6 price 2021
Principles of marketing topic 6 price 2021
 
Lecture 6 Revenue Models.pptx
Lecture 6 Revenue Models.pptxLecture 6 Revenue Models.pptx
Lecture 6 Revenue Models.pptx
 
Pricing
PricingPricing
Pricing
 
Session 6 fall 2014
Session 6 fall 2014Session 6 fall 2014
Session 6 fall 2014
 
Pricing
PricingPricing
Pricing
 
Lecture 08 Digital Pricing
Lecture 08 Digital PricingLecture 08 Digital Pricing
Lecture 08 Digital Pricing
 
M5 Pricing and Channels.pptx
M5 Pricing and Channels.pptxM5 Pricing and Channels.pptx
M5 Pricing and Channels.pptx
 
E marketing
E marketingE marketing
E marketing
 
Business Model Canvas
Business Model CanvasBusiness Model Canvas
Business Model Canvas
 
How To Convert Underpants Into Profits
How To Convert Underpants Into ProfitsHow To Convert Underpants Into Profits
How To Convert Underpants Into Profits
 
Merchandise management
Merchandise management Merchandise management
Merchandise management
 
Value Proposition Powerpoint Presentation Slides
Value Proposition Powerpoint Presentation SlidesValue Proposition Powerpoint Presentation Slides
Value Proposition Powerpoint Presentation Slides
 
pricing strategy
pricing strategypricing strategy
pricing strategy
 
pricing strategy
pricing strategypricing strategy
pricing strategy
 
Pricing - Setting up your startup for SaaS Growth
Pricing - Setting up your startup for SaaS GrowthPricing - Setting up your startup for SaaS Growth
Pricing - Setting up your startup for SaaS Growth
 
Pricing strategies
Pricing strategiesPricing strategies
Pricing strategies
 

Plus de Nascenia IT

Plus de Nascenia IT (20)

AI Tools for Productivity: Exploring Prompt Engineering and Key Features
AI Tools for Productivity: Exploring Prompt Engineering and Key FeaturesAI Tools for Productivity: Exploring Prompt Engineering and Key Features
AI Tools for Productivity: Exploring Prompt Engineering and Key Features
 
Introduction to basic data analytics tools
Introduction to basic data analytics toolsIntroduction to basic data analytics tools
Introduction to basic data analytics tools
 
Communication workshop in nascenia
Communication workshop in nasceniaCommunication workshop in nascenia
Communication workshop in nascenia
 
The Art of Statistical Deception
The Art of Statistical DeceptionThe Art of Statistical Deception
The Art of Statistical Deception
 
করোনায় কী করি!
করোনায় কী করি!করোনায় কী করি!
করোনায় কী করি!
 
GDPR compliance expectations from the development team
GDPR compliance expectations from the development teamGDPR compliance expectations from the development team
GDPR compliance expectations from the development team
 
Writing Clean Code
Writing Clean CodeWriting Clean Code
Writing Clean Code
 
History & Introduction of Neural Network and use of it in Computer Vision
History & Introduction of Neural Network and use of it in Computer VisionHistory & Introduction of Neural Network and use of it in Computer Vision
History & Introduction of Neural Network and use of it in Computer Vision
 
Ruby on Rails: Coding Guideline
Ruby on Rails: Coding GuidelineRuby on Rails: Coding Guideline
Ruby on Rails: Coding Guideline
 
iphone 11 new features
iphone 11 new featuresiphone 11 new features
iphone 11 new features
 
Software quality assurance and cyber security
Software quality assurance and cyber securitySoftware quality assurance and cyber security
Software quality assurance and cyber security
 
Job Market Scenario For Freshers
Job Market Scenario For Freshers Job Market Scenario For Freshers
Job Market Scenario For Freshers
 
Modern Frontend Technologies (BEM, Retina)
Modern Frontend Technologies (BEM, Retina)Modern Frontend Technologies (BEM, Retina)
Modern Frontend Technologies (BEM, Retina)
 
CSS for Developers
CSS for DevelopersCSS for Developers
CSS for Developers
 
Big commerce app development
Big commerce app developmentBig commerce app development
Big commerce app development
 
Integrating QuickBooks Desktop with Rails Application
Integrating QuickBooks Desktop with Rails ApplicationIntegrating QuickBooks Desktop with Rails Application
Integrating QuickBooks Desktop with Rails Application
 
Shopify
ShopifyShopify
Shopify
 
TypeScript: Basic Features and Compilation Guide
TypeScript: Basic Features and Compilation GuideTypeScript: Basic Features and Compilation Guide
TypeScript: Basic Features and Compilation Guide
 
Clean code
Clean codeClean code
Clean code
 
Ruby conf 2016 - Secrets of Testing Rails 5 Apps
Ruby conf 2016 - Secrets of Testing Rails 5 AppsRuby conf 2016 - Secrets of Testing Rails 5 Apps
Ruby conf 2016 - Secrets of Testing Rails 5 Apps
 

Dernier

Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
daisycvs
 
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
amitlee9823
 
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
dollysharma2066
 
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
dlhescort
 
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
amitlee9823
 
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service NoidaCall Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
dlhescort
 
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
lizamodels9
 

Dernier (20)

Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxCracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptx
 
Falcon Invoice Discounting platform in india
Falcon Invoice Discounting platform in indiaFalcon Invoice Discounting platform in india
Falcon Invoice Discounting platform in india
 
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
Quick Doctor In Kuwait +2773`7758`557 Kuwait Doha Qatar Dubai Abu Dhabi Sharj...
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Century
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
 
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
 
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptxB.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
 
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdfDr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
 
Call Girls Service In Old Town Dubai ((0551707352)) Old Town Dubai Call Girl ...
Call Girls Service In Old Town Dubai ((0551707352)) Old Town Dubai Call Girl ...Call Girls Service In Old Town Dubai ((0551707352)) Old Town Dubai Call Girl ...
Call Girls Service In Old Town Dubai ((0551707352)) Old Town Dubai Call Girl ...
 
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
 
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
 
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
 
RSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors DataRSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors Data
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentation
 
It will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayIt will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 May
 
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
 
Monthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxMonthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptx
 
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service NoidaCall Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
 
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
 
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
 

Revenue Models and Pricing

  • 2. What? • How a business generates revenue streams from its products and services
  • 3. Why • To sustain the business
  • 4.
  • 5. Revenue Models: Commerce & Retail • Selling physical goods: Clothing • Selling digital products: Cell phone Ideal Customers Advantage Problems Ideal Products
  • 6. • A service sold per unit (hour, distance, weight, bandwidth): ISP, Telecom, Theater, Bus • A service with fixed price: ISP, Telecom • Daily deals / flash sales: ajkerdeal, akhoni (previously) Ideal Customers Advantage Problems Ideal Products Revenue Models: Commerce & Retail
  • 7. Revenue Models: Subscription & Usage Fees • Subscription: Newspaper • Usage fees: Electricity • Rental: House, Car Ideal Customers Advantage Problems Ideal Products
  • 8. Revenue Models: Licensing • License of usage: Software Ideal Customers Advantage Problems Ideal Products
  • 9. Revenue Models: Auctions & Bids • Auctions: ebay Ideal Customers Advantage Problems Ideal Products
  • 10. Revenue Models: Advertising • Advertisements: TV, Newspaper, Priyo.com • Promoted content: Bikroy.com • Sponsorships: Maya.com.bd Ideal Customers Advantage Problems Ideal Products
  • 11. Revenue Models: Data • Databases: SMS gateways Ideal Customers Advantage Problems Ideal Products
  • 12. Revenue Models: Transaction / Intermediation • Brokerage • Transaction enablers: epayment gateway – SSL Commerze • Affiliate programs: Amazon • Creating a platform / marketplace: Odesk, Oployee, kaymu.com.bd, carmudi.com.bd Ideal Customers Advantage Problems Ideal Products
  • 13. Revenue Models: Freemium • Paid version without advertisements • Paid version without restrictions • Paid version with additional features Ideal Customers Advantage Problems Ideal Products
  • 14. Revenue Models: Negative Operating Cycle • Lower price by receiving payment before delivering the offering – Amazon, Airbnb, courier service for c-commerce in Bangladesh Ideal Customers Advantage Problems Ideal Products
  • 15. Revenue Models: Razor/Blades • Offer the high-margin below cost to increase volume sales of the low-margin razor blades. – Printers and ink – Glucometer – Free connection with router by ISPs – Free SIM by Telcos Ideal Customers Advantage Problems Ideal Products
  • 16. Revenue Models: Reverse Razor/Blades • Offer the low-margin item below cost to encourage sales of the high-margin companion product – Kindle, iPod/iTunes Ideal Customers Advantage Problems Ideal Products
  • 17. Pricing Strategy Selecting Pricing Objective Determining Demand Estimating Costs Analyzing Competitor’s Costs, Prices and Offers Selecting a Pricing Method Selecting Final Price
  • 18. Pricing Objective • Survival • Maximum Current Profit • Maximum Market Share • Maximum Market Skimming • Product-Quality Leadership • Other Objectives Selecting Pricing Objective Determining Demand Estimating Costs Analyzing Competitor’s Costs, Prices and Offers Selecting a Pricing Method Selecting Final Price
  • 19. Determining Demand • Price Sensitivity – Less price sensitive when • Product more distinctive • Buyers are less aware of substitute • Expenditure is smaller part of buyer’s income • Expenditure is small compared to the total cost of the product • Product is assumed to have more quality, prestige or exclusiveness • Estimating Demand Curves • Price Elasticity of Demand Selecting Pricing Objective Determining Demand Estimating Costs Analyzing Competitor’s Costs, Prices and Offers Selecting a Pricing Method Selecting Final Price
  • 20. Estimating Costs • Types of costs and level of productions - Variable cost - Total cost - Average cost • Accumulated production • Target costing Selecting Pricing Objective Determining Demand Estimating Costs Analyzing Competitor’s Costs, Prices and Offers Selecting a Pricing Method Selecting Final Price
  • 21. Estimating Costs • Accumulated production • Target costing Selecting Pricing Objective Determining Demand Estimating Costs Analyzing Competitor’s Costs, Prices and Offers Selecting a Pricing Method Selecting Final Price
  • 22. Analyzing Competitors’ Costs, Prices and Offers Selecting Pricing Objective Determining Demand Estimating Costs Analyzing Competitor’s Costs, Prices and Offers Selecting a Pricing Method Selecting Final Price
  • 23. Selecting a Pricing Method • Markup Pricing – Unit cost = variable cost + fixed cost / unit sales – Markup price= unit cost / (1 - desired return on sales) = 16/(1-0.2) = 20 Selecting Pricing Objective Determining Demand Estimating Costs Analyzing Competitor’s Costs, Prices and Offers Selecting a Pricing Method Selecting Final Price
  • 24. Selecting a Pricing Method • Target-return Pricing = unit cost + (desired return*invested capital) / unit sales • Break-even Volume = fixed cost / (price- variable cost) Selecting Pricing Objective Determining Demand Estimating Costs Analyzing Competitor’s Costs, Prices and Offers Selecting a Pricing Method Selecting Final Price
  • 25. Selecting a Pricing Method • Perceived Value Pricing • Value Pricing • Going Rate Pricing • Auction-Type Pricing Selecting Pricing Objective Determining Demand Estimating Costs Analyzing Competitor’s Costs, Prices and Offers Selecting a Pricing Method Selecting Final Price
  • 26. Selecting Final Price • Impact of other marketing activities • Company pricing policies • Gain-and-risk-sharing Pricing • Impact of Price on other parties Selecting Pricing Objective Determining Demand Estimating Costs Analyzing Competitor’s Costs, Prices and Offers Selecting a Pricing Method Selecting Final Price
  • 27. Need to Know before Revenue Model • Your strength – Operation – Selling skills – Existing networks – Market / customer readiness – Potential market